After the inflation in petroleum, it’s time of Indian Railway to put extra pressure on common people which are already facing inflation in almost in all sectors. in a surprising turn of event Indian railways has decided to hike the parcel and luggage rate by 25% with immediate effect which is applicable from June 1, 2012.

By increasing the parcel rate, railway wants to mop up INR Rs. 370 crore as additional revenue in the current fiscal. Railways have earned INR Rs. 1600 crore from parcel and luggage in 2011-12. The last revision of parcel and luggage rates had taken place in 2006.

Indian Railway's Parcel Service

Indian Railway's Parcel Service

The new rates are applicable to all goods including newspapers and magazines. Generally tyres, newspapers and magazines, pharmaceuticals, pulses and flour are among the goods booked in parcel service of the railway. However 19 special parcel trains are exempted from this hike.

In India railways there are three types of parcel rates – Standard, Premium and Rajdhani. Standard rates are applicable on goods booked in parcel service of non-express trains while Premium rates are charged in express and mail trains. Goods booked in Rajdhani and Shatabdi are charged Rajdhani rate.

Earlier, Standard rate was INR Rs. 1.31 per 10 kg for 50 km and now it has become INR Rs. 1.61 for the same weight and distance after the hike. Premium rate was hiked from INR Rs. 2.63 per 10 kg for 50 km to INR Rs. 3.28 while Rajdhani rate was INR Rs. 3.93 km which has been increased to INR Rs. 4.92 for the same category of distance and weight.